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Nevertheless, the budget is unlikely to contain any money for the four extra diplomatic posts recommended by Labor's Asian Century White Paper last year.

Australia has the smallest diplomatic footprint of all G20 nations, with fewer than 100 overseas missions. The OECD average is 133.

Opposition foreign affairs spokeswoman Julie Bishop, asked about the Budapest embassy closure, said the coalition would review Australia's overseas representation if it won government at the September 14 election.

"I think this is just another example of the government looking to save money wherever it can because it has lost control of the budget," she told Sky News.

Senator Carr says Tuesday's budget will also commit $215.9 million over seven years to upgrade the government's secure international communications network.